Business of oil tankers and storage of crude oil and petroleum products (“FSU Business”)
Nature of Service Provision:
The Group Company has provided the transport and floating storage unit (FSU) services by using FSU vessels for storage of goods; whereas, the Group Company shall be obliged to keep goods of its customers in the condition as per the quality, specifications and quantity as prescribed by customers within the agreed period of time.
With the increasing fuel consumption in Asia and restrictions on land use for construction of additional onshore tank terminals in Singapore which is the Asian fuel trading hub, FSU vessels have been used as substitutes for fuel storage and ship-to-ship transfer of fuel trading operators which reduced port expenses and the waiting time, and had no restrictions on tidal height level at ports.
Goods that the Group Company provided services of transport and storage:
Goods that the Group Company had its expertise in transport and storage included crude oil and furnace oil.
Nature of Service Provision of Leasing out Tanks for Storage and Transport of Goods:
The Group Company provides its business of leasing out tanks for storage of goods in FSU vessels which are large vessels with large square storage tanks, numbering 7-17 tanks per vessel; whereas, the Group Company provides its services divided into 3 types including 1) leasing out of some tanks for storage; 2) leasing out of whole tanks for storage of goods or leasing out of whole vessels; and 3) provision of fuel mixing and other services.
The Group Company has been able to provide services of domestic and overseas transport and floating storage of goods. At present, FSU vessels of the Group Company have been docked at Tanjung Pelapas Port in Malaysia and in waters between Singapore and Malaysia, which being the Asian hub of fuel trading business; whereas, Tanjung Pelapas Port has proper location for docking of FSU vessels because it is located in the International shipping routes of large commercial vessels. Moreover, the Group Company expects to start the service of oil storage with FSU vessel in areas of Koh Sichang, Sri Racha District, Chonburi Province in the 2nd Quarter of 2017.
The Group Company has extended its fleet of FSU vessels during 2012-2016 to meet the increasing demands of customers; whereas, the number of FSU vessels and the quantity of transport and storage of goods of the Group Company shall be as follows:
Table of quantity of transport and storage of goods by FSU vessels
|(Unit : DWT)||2012||2013||2014||2015||2016||2017|
|The number of FSU vessels:||2||3||4||5||6||7|
|Quantity of transport and storage of goods||572,354||882,338||1,163,338||1,463,387||1,776,065||2,075,995|
As of 5 July 2018, the Group Company owned FSU vessels (VLCC), 5 vessels, with the maximum capacity of 1,503,564 DWT and the average service life of approximately 20 years, as per the following details:
Table of Floating Storage Unit (FSU) Vessels of the Company:
|Vessel Name||Country of Vessel Registration||Capacity (DWT)|
|Prima Marine Public Company Limited|
|Singha Tankers Co., Ltd.|
|Bongkot Marine Services Co., Ltd.|